The Proof-of-Reserve (PoR) debate generated by Michael Saylor, co-founder and Chairman of Strategy, the business intelligence firm, has gained traction in the crypto community. Different experts in the crypto sector have now waded in to share their views on Saylor’s stance.
Notably, Saylor, who shared his views on the sidelines of the Bitcoin 2025 Conference in Las Vegas, opposed institutional holders publishing proof-of-reserves to show their asset holdings.
Michael Saylor Rejects Proof-of-Reserve as ‘Bad Idea’
According to Michael Saylor, requesting institutional holders to publish reserve data exposes companies to huge security threats.
He believes PoR is risky as it reveals too much information that malicious actors could leverage to track fund movements.
Saylor referenced the FTX exchange and Mt.Gox as examples that industry players should learn from to avoid repeating the same mistakes in the sector. He stated,
“It actually dilutes the security of the issuer, the custodians, the exchanges and the investors. It is not a good idea, it is a bad idea.”
The co-founder of Strategy insists that even if his business intelligence firm revealed its Bitcoin holdings on-chain, it does not tell a complete financial story.
For instance, it would not show the debt, loans, and obligations, which could prove misleading to potential investors about the company’s true financial status.
Crypto Transparency Advocates Push Back
Interestingly, experts in the cryptocurrency sector have waded in. Notably, Nate Geraci, President of the ETF Stores, disagrees with Michael Saylor’s stance.
In his submission, Geraci wondered about the point of crypto if it is not transparent about their Bitcoin reserve. He maintained that if “Bitwise is comfortable publishing wallet addresses…then Strategy should be too.”
Geraci believes the essence of crypto is not to obscure transactions but transparency. As such, for the sake of accountability, especially for large institutions investing in crypto, Bitcoin PoR needs to be shown.
However, Eric Balchunas, Bloomberg’s senior ETF analyst, has highlighted a practical concern from Geraci’s viewpoint.
Balchunas pointed out that for crypto giants like Strategy and BlackRock, the hassle of showing proof of reserve might not be worth it.
The Bloomberg Senior ETF analyst agreed with Michael Saylor that publicizing wallet addresses containing the Bitcoin reserve could invite unwanted attention.
Some of the mentioned challenges includes scams, spam, conspiracy theories, and constant scrutiny.
These concerns have moved Balchunas to insist that “it just is not worth the incoming insanity you are likely to get.”
Analyst Hails Strategy’s Bitcoin Strategic Power Play
Meanwhile, Ki Young Ju, a renowned on-chain analyst and CEO of CryptoQuant, has lauded Michael Saylor.
Young Ju hailed him for strategically using Wall Street mechanisms to pursue Bitcoin accumulation. He said,
“Saylor hacked the U.S. capital markets and rerouted liquidity into Bitcoin.”
This indicates that Michael Saylor, leveraging the U.S. capital market, issued debts and sold shares to raise billions of dollars for Bitcoin acquisition.
The on-chain analyst observed that as long as volatility and liquidity exist, firms like Strategy could keep buying more Bitcoin from raised capital.
He noted that the expression “up only,” which used to be regarded as a meme, has become today’s market reality.
Young Ju believes this reality has been achieved through the structural changes institutional players like Strategy have brought to the digital currency space.
